Listing ID: 72497
This business was founded in 1965 and has been in continuous operation since that time. This company has continually grown as an industrial supply that specializes in metal and woodworking machinery, specialty tools, as well as various custom-made components.
Some of the inventory includes, milling/cutting machines including CNC and tools, measuring tools, hand tools, abrasives, bits and many more. This company supplies some of the top brands including, DeWalt, Jet, Delta, LS Starrett, Premier, Powermatic and many other brand suppliers. There is virtually no competition in his market area.
The seller is not only willing to assist in the transition, he is also willing to stay on in a field sales role.
The company carries both new and used equipment – and the used machines are sold at a *very* strong markup.
This is a great opportunity to buy into a successful business that will cash flow nicely.
For more information please contact Charlie MacPherson, Business Broker with Inbar Group, Inc. via firstname.lastname@example.org or 207-480-1113.
*Confidential Listing – not in the indicated zip code.
- Asking Price: $750,000
- Cash Flow: $250,000
- Gross Revenue: $900,000
- EBITDA: $250,000
- FF&E: $60,000
- Inventory: $650,000
- Inventory Included: N/A
- Established: 1965
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:4
- Furniture, Fixtures and Equipment:N/A
Owner will support the transition.
There are no competitors in the area. Some buyers come from out of state, especially for the larger used equipment.
Consider hiring a field salesperson to call on new accounts. A good option is to find an independent rep who is already at the point of call with other items.
The company was founded in 1965, making the business 57 years old.
The deal won't include inventory valued at $650,000*, which ins't included in the requested price.
Why is the Current Owner Selling The Business?
There are all types of reasons why people decide to sell businesses. Nevertheless, the genuine factor vs the one they say to you might be 2 totally different things. As an example, they may state "I have a lot of other obligations" or "I am retiring". For numerous sellers, these factors are valid. But also, for some, these might just be justifications to try to hide the reality of changing demographics, increased competition, current reduction in revenues, or a range of other factors. This is why it is really important that you not rely entirely on a seller's word, yet rather, use the seller's answer combined with your general due diligence. This will repaint a much more practical image of the business's present circumstance.
Existing Debts and Future Obligations
If the existing company is in debt, which numerous companies are, then you will have reason to consider this when valuating/preparing your offer. Lots of businesses take out loans with the purpose of covering items such as supplies, payroll, accounts payable, and so on. Keep in mind that sometimes this can indicate that revenue margins are too thin. Lots of companies fall into a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may also be future obligations to take into consideration. There might be an outstanding lease on equipment or the structure where the business resides. The business may have existing contracts with suppliers that should be fulfilled or might cause fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do businesses in the area draw in brand-new customers? Many times, companies have repeat customers, which develop the core of their everyday profits. Particular variables such as brand-new competition sprouting up around the location, roadway construction, and staff turnover can impact repeat clients as well as adversely impact future incomes. One vital thing to think about is the location of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the highway? Undoubtedly, the more people that see the business often, the better the chance to construct a returning customer base. A final thought is the general area demographics. Is the business located in a largely inhabited city, or is it located on the outside border of town? How might the regional median house income influence future revenue potential?